IDB controlled Azorim Investments on Monday agreed to sell all its holdings in Dutch real estate firm GTC International and GTC Poland to investment company Kardan N.V., for a total of $122 million.
As part of the deal, the Kardan group will purchase 24.5 percent of GTC International for $91.6m. Kardan also will take control of GTC Internationalâ€™s other regional subsidiaries in Hungary, Romania, Croatia, and Serbia through the purchase of Azorimâ€™s stakes in GTC Poland for a total of $19.4m.
Following the deal, GTC Poland will increase its stakes to approximately 97% in each of GTC Hungary, GTC Serbia and GTC Croatia and to about 94% in GTC Romania. Both transactions are scheduled to be completed by December 15, 2005.
â€œWe were looking to make a good profit when we made the investment in GTC in 1999. This deal presented a good opportunity,â€ David Lev, Azorim CEO, told The Jerusalem Post.
Azorim said it expects to book a $44m. profit on the sale in the fourth quarter of 2005.
GTC International was owned by Kardanâ€™s real estate subsidiary, Kardan Real Estate, and by IDB Holding Corp. through Azorim Investment, Development and Construction. GTC International owns 50.7% of GTC Poland, which has a current market capitalization of about $820m.
GTC Poland is one of the leading real estate developers in Central and Eastern Europe. It invests in three main sectors of the real estate market: office buildings, retail and entertainment centers and residential property.
â€œThe joint partnership between Azorim and Kardan through GTC was very successful thanks to the opportunities which Kardan group has seen in the real estate market in Eastern Europe,â€ said Nochi Dankner, who controls IDB Holding Corp.
Dankner and Yosef Greenfeld, chairman of the Kardan group, said they also will examine opportunities for joint activities in the real estate sector between Kardan and IDB.
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